Supply Chain Agility
- Acquire logistics companies or develop in-house logistics operations.
- Greater supply chain visibility and higher quality as well as reducing shipping costs and time due to more streamlined logistics networks.
- Consider new suppliers and sourcing options.
- Create more connected supply chains through digitizing that help overcome global geopolitical issues and global pandemics.
Battle for Talent
- Labor challenges are to be expected due to a shrinking pool of applicants, an aging workforce, and a shortage of highly skilled workers.
- More emphasis will be placed on outsourcing.
- Diversity, Equity & Inclusion (DEI) approach to attract more women and racially and ethnically diverse groups.
- Considerable void when it comes to skills and experience. Manufacturers need to work with schools and universities in their communities to ensure that manufacturing-focused subjects are being well promoted and taught, including the integration of advanced technologies.
Cybersecurity
- Rise in cybersecurity incidents across manufacturing companies. RSM survey of middle market businesses in 2023 indicated that 20% of companies experienced a data breach in the past year and 35% claimed a ransomware attack.
- Cybersecurity assessments are a must to identify critical information and intellectual property that needs to be protected.
- Education of employees of potential phishing schemes is paramount to a successful cybersecurity campaign.
Technology
- Data analysis predictive maintenance and use of data analysis to identify anomalies in equipment performance.
- Data decision-making around sourcing, production, fulfillment, and cost reduction.
- Adopting generative artificial intelligence (AI) will help with predictive maintenance and quality control.
- Controls around AI including ethics.
- Autonomous vehicles in warehouses to move materials and products.
- Investments are needed to support advanced technologies.
ESG
- Legislation has placed more emphasis on green/clean technologies (tax credits, grants, government financing)
- Manage waste
- Smart buildings
- Electrifying fleets
Inflation
- Inflation has slowed with an expected 2.5% rate in 2024.
Possible Recession
- Recession is still possible but at a lower probability in 2024 compared to 2023.
- Geopolitical risks provide elevated uncertainty in 2024 that could provide unfavorable economic results.
Source
RSM “Top 2024 Manufacturing Trends to Watch”; Federal Reserve Bank of St. Louis 2024 Economic Report